Samsung Electronics’ Q1 profit tops market expectations for solid chip demand According to Reuters


© Reuters. FILE PHOTO: The logo of Samsung Electronics is seen at its office building in Seoul, South Korea, South Korea, October 11, 2017. REUTERS / Kim Hong-Ji


By Joyce Lee and Heekyong Yang

SEOUL (Reuters) -Samsung Electronics Co Ltd reported on Thursday estimated quarterly operating income rose 50% to post its highest first-quarter profit since 2018, beating expectations as demand solidifies. certainly underpin memory chip prices.

Earnings for the world’s largest smartphone and memory chip maker were also supported by fast-growing smartphone sales in the quarter, along with disruptions at the NAND chip factory, analysts said. Flash of rivals, analysts said.

Samsung (KS:) placed its first-quarter profit at 14.1 trillion won ($11.6 billion) in preliminary earnings, compared with Refinitiv SmartEs estimates of 13.3 trillion. billion won. Revenue could grow 18% year-on-year to a record 77 trillion won, beating market expectations.

“The guidance beat market expectations, likely due to better-than-expected memory chip shipments and pricing,” said Park Sung-soon, an analyst at Cape Investment & Securities.

Despite memory chip prices falling in the first quarter, analysts say steady demand from data center customers as well as cautious investment spending by chipmakers and limited capacity expansion The industry has boosted Samsung’s chip earnings, which account for about half of its total profits.

The chipmaker could also benefit from disruptions at rival NAND Flash chip factories owned by Japan’s Kioxia and the US company. Western Digital (NASDAQ:) due to material contamination.

“After the contamination issue at Kioxia, I think there have been many orders of NAND Flash chips made by Samsung for secured products from Kioxia,” said Park.

Disruptions at the Kioxia factory in early February are expected to push NAND Flash prices up 5%-10%, offsetting the effect of modest inventory levels due to the disruption, said data provider TrendForce. Buyer maintain.

According to Counterpoint Research, Samsung shipped around 72 million smartphones in the first quarter, down about 11% from a year earlier, mainly due to the release of its latest flagship smartphone Galaxy. S22.

According to Sujeong Lim, vice president at Counterpoint, the Galaxy S22 series globally sold about 50% more in the first week after its launch in late February than its previous S21 model.

Lim said that Samsung is estimated to have shipped more than 6 million units of the S22 series by the end of March, adding that sales were in line with initial expectations.

Samsung is expected to release detailed earnings on April 28, when investors will be interested to hear any comment on its merger and acquisition plans, how it plans to operating the memory chip business to boost profitability and chip demand outlook.

Shares of Samsung fell 0.2 percent in morning trading, compared with a 0.9 percent drop in the broader market.

(1 dollar = 1,218,1800 won)

Source link


News of max: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button